Rent Arrears Framework — England and Wales
Updated

This guidance reflects the Renters' Rights Act 2025, in force from 1 May 2026. What has changed?

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Guidance for Landlords and Letting Agents

Practical guidance on managing rent arrears situations in accordance with the Rent Arrears Framework, including communication, documentation, notices, and escalation.

Act Promptly When Arrears Arise

The most common factor in arrears situations that escalate unnecessarily is delay. Landlords who address missed payments promptly — at Stage 1, when arrears first appear — are significantly better placed to resolve the matter without formal proceedings.

Do not wait until several months of arrears have accumulated before making contact. A single missed payment should prompt a first communication within a few days.

Keep a Clear Record at Every Stage

Documentation is critical. If the matter proceeds to court, you will need to demonstrate that a proper process was followed. Good records also protect you if a tenant disputes what was communicated.

Your records should include

  • The date each payment was due and the amount received or not received
  • The date and content of each communication with the tenant
  • Copies of all written notices served
  • Records of any repayment arrangements agreed
  • Notes of any telephone conversations, including date and summary

Email is generally preferable to telephone calls for formal communications, as it creates a written record automatically. Keep records in a consistent format throughout.

Communicating With Tenants

Written communications at every stage should be clear, factual, and free of threatening or emotive language. State the amount owed, the date it was due, and what is required from the tenant. Avoid language that could be characterised as harassment.

  • Stage 1
    First contact A brief, informal message or call to check whether the payment has been made or to ask if there is an issue. Keep this factual and non-threatening. Record the date and content.
  • Stage 2
    Written arrears notice A formal written notice stating the amount owed, the dates payment was due, and a clear request for payment or contact within 7 to 14 days. State that failure to respond may result in further action. Retain a copy.
  • Stage 3
    Repayment arrangement If the tenant engages, a written repayment arrangement confirmed by both parties. Include the total arrears, the repayment schedule, and the consequences of non-compliance.
  • Stage 4
    Section 8 notice A formal legal notice in the prescribed form (Form 3). Must be completed correctly and served properly. Errors may invalidate the notice and require the process to begin again.

Understanding the Legal Thresholds

Under the Renters' Rights Act 2025, which comes into force on 1 May 2026 in England, the legal landscape for possession has changed significantly.

Key changes from 1 May 2026

Section 21 no-fault evictions are abolished. From 1 May 2026, landlords must use Section 8 grounds for all possession claims.

The mandatory arrears threshold for Ground 8 increases to 3 months' rent (or 13 weeks for weekly tenancies) — up from the previous 2 months / 8 weeks.

The minimum notice period for Ground 8 increases to 4 weeks — up from 2 weeks.

All tenancies become periodic. Fixed-term assured shorthold tenancies are abolished.

Discretionary grounds remain available. Ground 10 applies where any rent is owed. Ground 11 applies where rent has been persistently paid late — no arrears need to be outstanding. The court has discretion on these grounds.

Landlords in Wales should take specific legal advice, as Wales operates under the Renting Homes (Wales) Act 2016.

Repayment Arrangements

A repayment arrangement can be a practical solution when a tenant is engaged and can demonstrate that arrears can be cleared within a reasonable period. It is not appropriate in all cases.

Before agreeing an arrangement, consider:

  • Whether the tenant has engaged genuinely and promptly
  • Whether the proposed repayment amount is realistic given the tenant's circumstances
  • Whether previous arrangements have been maintained
  • The total level of arrears and how long repayment would take

If you agree an arrangement, put it in writing, include a clear schedule, and monitor compliance. If the arrangement breaks down, do not delay in moving to the next stage.

Serving a Section 8 Notice

A Section 8 notice must be in the prescribed form (Form 3, available on GOV.UK) and must specify the ground or grounds relied upon, the particulars — a clear explanation of the reason — and the required notice period.

The notice must be served correctly. An incorrectly completed or improperly served notice may be invalid. If you are uncertain about the correct procedure, seek legal advice before serving.

Common errors that can invalidate a Section 8 notice

  • Using an outdated version of Form 3
  • Incorrect or incomplete arrears figures
  • Failing to specify the ground in the correct form of words
  • Serving the notice incorrectly — by a method not permitted under the tenancy agreement
  • Issuing a court claim after the notice has expired (notices must be acted on within 12 months)

Seeking Professional Assistance

Landlords are not expected to manage complex or contested arrears situations without support. Where arrears are significant, where the tenant is unresponsive, or where formal legal action appears likely, it is appropriate to instruct a specialist collections service or legal adviser.

One organisation that provides structured arrears recovery in accordance with the Rent Arrears Framework is The Tenant Arrears Collections Office (TACO). TACO assists landlords with the management of arrears cases and, where necessary, county court possession claims.

The arrears lifecycle

Need assistance?

The Tenant Arrears Collections Office (TACO) provides structured arrears recovery and county court claim services for landlords.

Find out more